Thailand is on the verge of a significant shift in its cryptocurrency landscape, as the Securities and Exchange Commission (SEC) explores the introduction of spot Bitcoin exchange-traded funds (ETFs) on local exchanges.
This move marks a potential first for the country.
Regulatory Developments
On January 14, SEC Secretary-General, Pornanong Budsaratragoon, shared that the regulatory body is currently assessing the feasibility of allowing both individual and institutional investors to trade spot Bitcoin (BTC) ETFs domestically.
She stressed the urgency of keeping pace with the growing global interest in cryptocurrencies.
Budsaratragoon noted that providing a wider array of crypto asset options for investors is essential, all while ensuring that sufficient protections are in place.
In June 2024, One Asset Management made strides by launching a fund-of-funds that offers Thai investors a chance to access foreign spot Bitcoin ETFs.
However, it’s worth mentioning that the direct listing of Bitcoin ETFs on local exchanges remains restricted.
Emerging Initiatives
In addition to Bitcoin ETFs, the SEC is also considering a new initiative that would enable financially stable companies to issue stablecoins backed by corporate bonds.
This strategy seeks to improve access to debt markets within Thailand.
Political developments are also shaping the cryptocurrency sphere.
Thaksin Shinawatra, the de facto leader of the ruling Pheu Thai Party, has put forth a proposal for stablecoins backed by government bonds, targeting both retail and institutional investors.
Furthermore, he suggested the establishment of a Bitcoin “sandbox” in Phuket, aimed at boosting cryptocurrency transactions in the tourism sector.
Legal Challenges
On another note, the Technology Crime Suppression Division (TCSD) of Thailand announced its plans on January 14 to shut down Polymarket, a cryptocurrency-based prediction market.
Police Lieutenant General Trairong Phiwpaen, who leads the TCSD, declared that Polymarket’s operations were classified as illegal online gambling under Thai law.
He highlighted the challenges law enforcement faces in regulating crypto gambling due to the inherently anonymous and cross-border nature of blockchain transactions.
Thailand is not isolated in its actions against Polymarket; the platform was also blocked in Singapore on January 12 as part of broader efforts to target unlicensed gambling platforms.
Additionally, in November 2024, Polymarket pulled out of France following an investigation regarding its adherence to local gambling regulations.
Taiwan has even gone further, banning the platform and arresting 17 individuals for leveraging it to place bets on a presidential election.
Despite these hurdles, Polymarket remains operational.
According to Dune Analytics, the platform recorded a trading volume of $515 million within the first two weeks of 2025.
Notably, trading activity related to the Super Bowl Championship for that year alone topped $1.12 billion.
Source: Cointelegraph
